eBook AutomatingContractReview r3

8/16/2019 eBook AutomatingContractReview r3

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THE GUIDE TO

Automating Contract

Review and Approvals

http://www.laserfiche.com/?utm_source=contract-management-eBook&utm_medium=ebook&utm_campaign=contract-management


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ContentsIntroduction 2

Why Automate Contract Management? 3

Pain Points from Poor Contract Management 8Benefits of Contract Automation 15

How Contract Automation Works 16

5 Steps to Contract Management 23

Contract Automation in Action 33

Contract Automation: A Before & After Story 40Conclusion 44

THE GUIDE TO AUTOMATING CONTRACT REVIEW AND AP



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IntroductionFrom insurance policies to vendor agreements, contracts take many forms.They establish partnership and accountability between parties and often requireconsiderable negotiation before being finalized. The time it takes to approvea contract can be as significant as the content of the contract itself, and slow,manual contract processing reflects negatively on an organization’s ability toprovide excellent service.

An automated, digital contract management system reduces the administrative

burden on employees and allows legal, financial, sales and other professionals tmake better use of their expertise. The technology behind automation transformpassive documents into active drivers of the contract process, increasingproductivity without requiring extra staff.

Let’s explore the ways automation helps organizations build a high-functioningcontract management system that employees, partners and clients can apprecia

Why Automate

Contract Management?

Pain Points from Poor

Contract Management

Benefits of Contract

Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action

Contract Automation:

A Before & After Story

Conclusion

Introduction

Introduction



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Why AutomateContract Management?

By resisting automation, organizations limit their visibilityinto enterprise contracts, while exposing themselves torisks in the form of missed cost savings, poor compliance,and regulatory backlash.

Aberdeen Group Study: Assessing the Value of Contract Automation

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction

Why Automate




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Contract management depends on document-driven processes that, in a

paper-based environment, can be laborious and inefficient. For example, a bank

loan requires one or more employees to prepare and print copies of the loan

contract and submit them to multiple parties for review, revisions and signatures.

Although the contract is an essential part of processinga loan, spending hours of valuable time to complete thisprocess on paper is not.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction

Why Automate




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Enterprise content management (ECM) software reduces the time it takes to

complete tasks—without sacrificing quality of work. Organizations use ECM to

capture, store, secure and access information by:

} Importing all documents, whether they originate on paper or in a digital

format, into a digital repository.

} Organizing documents in the repository, where authorized employees

can search for, retrieve and edit them.

} Keeping files in a standard format (such as TIFF) that can be easily

shared across devices. } Archiving records as non-editable files retained according to a

compliant records retention schedule.

} Making information easier to locate during an audit or records request.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction

Why Automate




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For many organizations, BPA is morethan a convenience—it’s become centralto effective contract management.

A 2013 Business Integrity survey of200+ organizations found that

46% planned to automatetheir contract processes

as a result of low satisfaction levels withmanual processes.

Business process automation (BPA) facilitates document-based processes

and should be an integral part of your ECM solution. BPA handles many of

the administrative tasks that, though critical, slow down productivity when

performed manually. Such tasks include filing documents, creating new

folders and transferring documents between employees. BPA software also

eliminates the need for paper-specific tasks like making photocopies and

gathering handwritten signatures.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction

Why Automate


http://www.metrocorpcounsel.com/articles/23582/business-integrity%E2%80%99s-2013-contract-management-survey-reveals-big-opportunities-savinghttp://www.laserfiche.com/?utm_source=contract-management-eBook&utm_medium=ebook&utm_campaign=contract-managementhttp://www.metrocorpcounsel.com/articles/23582/business-integrity%E2%80%99s-2013-contract-management-survey-reveals-big-opportunities-saving


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Another study by the Aberdeen Group ranked “Best-in-Class” organizations

against “laggards” and found that organizations with the shortest cycle times

for contract review and approval (8 days versus 47) were also 84% more likely

to have automated routing and approval processes and 77% more likely to

automate notifications of key dates and events.

This focus on automation shows that organizations are now viewing contracts as

opportunities for operational improvement and competitive advantage.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction

Why Automate


LEARN THE BASICS HERE

Still have questions aboutbusiness process automation?

Laserfiche

ECM Blog

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Pain Points from PoorContract Management

Workflow inefficiency results from not knowing thatsomething must be done or by whom. Time spent creatingcontracts and resolving disputes incurs administration costs,opportunity costs, and a perception of poor customer service.

PricewaterhouseCoopers study: Contract Management:

Control Value and Minimize Risks

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction


Contract Management



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Several signs point to a subpar contract management system. Before youdecide to automate any contract processes, it’s important to articulateand assess these pain points. Here are seven indications that the need forautomation has become critical.

1 Missing or Lost Contracts

With so many contracts and drafts movingthrough the enterprise, it’s easy to losetrack of them in a manual system. Anemployee might even find himself askinga business partner for her copy of a contract

when his has gone missing.

This seemingly harmless error sends amessage of disorganization that can bedamaging to an organization. An automatedcontract management system doesn’t justsave face—it keeps your organizationprepared for any contract request, whether

it comes from a colleague, a third partyor an auditor.

Automating thecontract managementprocess makes it

possible to instantlylocate any contract.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction


Contract Management



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Inconsistent Versions of Contracts

Another sign of disorganization comes from poor version tracking. Without asystematic approach to contract drafting and storage, it becomes exponentially

more difficult to know which version is the most recent.

According to the PricewaterhouseCoopers study, “Storing paper contractsin a variety of locations makes it difficult to track down the contract and

associated data, and can create problems over version control.”

Limited Visibility into Obligations

When contracts are not stored in a central location, it is up to individuals,rather than the organization, to monitor contractual obligations. This becomesespecially problematic when employees depart and take their knowledge withthem, leaving the organization unsure of the employee’s abandoned accounts.

Without central oversight of contracts, customers might be undercharged whilevendors overcharge you. Perhaps this is why the Aberdeen Group study foundthat 53% of participants focused on contract management to improve revenuefrom service.

2

3

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction


Contract Management



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On the other hand, organizations can overspend when they pay unnecessarily forproducts or services, such as unused software licenses or maintenance fees onabandoned items. All these losses stem from a lack of contract awareness.

Unsustainable Operational Costs

Paper contracts result in storage, printing and mailing expenses that onlygrow over time. Destroying obsolete records seems like an easy way to mitigatethe costs of paper, but without an organized system for retaining records,organizations have no way of knowing when an old contract can be destroyed.

Instead of sacrificing work space for storage space and watching the papercosts increase, organizations can store contracts as digital files in an easilyaccessed repository.

Missing Contractual Milestones and Deadlines

Revenue also leaks when organizations don’t comply with sell-side contracts.For example, if a supplier fails to deliver correct services or quantities to

customers, it can be forced to issue refunds, discounts and other means ofcompensation to resolve the issue.

4

5

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction


Contract Management

I d i



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Costly Disaster Recovery

The cost of storing paper is high enough—imagine what happens when thosedocuments are damaged or destroyed due to a disaster. Floods, fires and other

emergencies can irreparably damage hard copies, and without a master contraclist or system for tracking contracts, it can be nearly impossible to assess whathas been compromised.

6

The worst disasteris the one you don’tanticipate. Roughly 40%of organizations withoutbusiness continuityplans will go out ofbusiness within a fewyears of a disaster.

Shared network drives also addrisk to the organization. Whenemployees store contracts locally,they become susceptible to

hardware malfunctions, networkcrashes and other system failures.Backing up digital files or storingthem on a remote server helpsmitigate this risk.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction


Contract Management

I t d ti



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Legal Disputes

Business relationships reach a peak of distrust when legal battles ensue.According to a 2013 Fulbright & Jaworski survey of litigation trends:

7

44% of U.S. corporatelitigations are related

to contract disputes—

this percentage rises

to 57% in the U.K.

44%

57%

U.S.

U.K.

Whether one party fails to uphold a contractual obligation or the contractlanguage is ambiguous and poorly drafted, the solution lies in a moretransparent, more efficiently monitored

contract management system.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction


Contract Management

Introduction

http://aryme.com/docs/adr/2-2-2881/tendencias-arbitraje-2013-usa-uk-fulbright-arbitration-survey.pdfhttp://www.laserfiche.com/?utm_source=contract-management-eBook&utm_medium=ebook&utm_campaign=contract-managementhttp://aryme.com/docs/adr/2-2-2881/tendencias-arbitraje-2013-usa-uk-fulbright-arbitration-survey.pdf


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Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction


Contract Management

REQUEST A DEMOand see how much better it can be.

Had enough of your inefficientcontract management process?

Introduction

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Benefits of

Contract AutomationAutomation technology is multi-functional and can lead to manydifferent benefits, including:

} Lowered storage, printing and courier costs.

} Fewer data entry errors and lost or misplaced files.

} Improved security with version tracking and role-based access.

} Central control over contracts.

} Improved accountability over stipulations and conditions.

} Higher productivity due to faster processing times.

} Simplified records management.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction


Automation

Introduction



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How ContractAutomation Works

A sophisticated ECM system can streamline the many stages of

contract management. Let’s look at those stages individually tobetter understand the functions and capabilities of ECM.

ContractRecords

STAGES OF CONTRACT MANAGEMENT

Contract Renewal& Amendment

ElectronicSignatures

Review &Approval

ContractTemplates

ContractRequests

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction

How Contract

Automation Works

Introduction



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Contract Requests

Many employees still have to pick upthe phone or send an email to request

a contract.

These unstructured methods ofinitiating contracts put employees ata disadvantage right from the start asthey must spend time transferring ormanually entering data.

With ECM, organizations can collectcontract requests through an electronicform. The person requesting the contractfills out the required information, suchas third party name and contract type,and submits the form electronically.The ECM system routes the form tothe appropriate employee to begin the

process, eliminating the need for phonecalls, emails and paper documents.

48% of respondentswork for organizationsthat still rely on phoneand email to requestcontracts.

—2013 Business Integrity survey

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction

How Contract

Automation Works

Introduction

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Contract Templates

Once the form is submitted, the receiving employee opens the correspondingcontract template from the ECM repository. For example, if a request for a

non-disclosure agreement has been submitted, then a non-disclosureagreement template will be used. This template can exist as a Microsoft Worddocument or PDF.

The ECM system automatically pulls information from the form and populates thmetadata fields associated with that template. The metadata helps employeessearch for contracts within the repository and provides “at a glance” informationabout the contract that staff can see without having to open the contract itself.

Metadata also includes fields that reflect the status of the contract, such as“pending approval,” “needs revision” or “finalized.” ECM routes the contract to thappropriate folder in the repository based on this information.

After the metadata is filled out by the ECM system, the employee customizes thetemplate based on the information provided in the form and metadata. In somecases, ECM can automatically populate fields in a PDF based on informationentered in a form.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Introduction

How Contract

Automation Works

THE GUIDE TO AUTOMATING CONTRACT REVIEW AND APIntroduction



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Review & Approval

When the contract draft is ready for review and approval, the employeedenotes the appropriate reviewers in the contract’s metadata. The ECM systemroutes a shortcut of the contract to the reviewers through an automaticallygenerated email.

By routing a shortcut and not five copies of the contract itself, reviewers canview each other’s changes and make simultaneous edits. This eliminates theback-and-forth process of revising hardcopy contracts. ECM can also trackchanges in case people need to view earlier versions of the contract.

The most advanced ECM systems will allowemployees to route and edit contracts througha web client or mobile device, giving themanytime, anywhere access to contracts.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

How Contract

Automation Works




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Electronic Signatures

Contracts require signatures at multiple points inthe review and approval process. When a contract isready for signatures, its metadata field is updated to

“requires signature.” This action triggers the contractto be automatically emailed to the appropriate partiesfor signatures.

Within the ECM system, the contract can be savedas a PDF that recipients can sign but not edit. ECMallows for electronic signatures either through

integration with a system such as DocuSign, or asa native component.

Once all parties electronically sign the contract andemail it back to the organization, the contract’s statusis changed to reflect its progress (usually “approved”or “finalized”) and automatically moved into thecorrect folder in the repository.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

How Contract

Automation Works




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Contract Renewal & Amendment

Metadata can be filled out based on the conditions of the contract. For example, contract that requires renewal within two years of its effective date can be foundbased on a “renewal date” field in the contract’s metadata. The ECM systemchecks the repository automatically for any contracts that need attention, keepinstaff members more aware of contractual stipulations while freeing them fromthe burden of manually monitoring every contract.

Contract Records

The life cycle of the contract is managed by the ECM system, which assignsretention and disposition schedules according to the contract’s metadata. Specifconditions can be assigned to the record based on industry regulations and theorganization’s business practices, ensuring compliance and reducing risk. Forexample, a vendor contract can be kept for two years (an interval) based on thedate of final signature (an event), after which the contract can be renewed ordeclared inactive.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

How Contract

Automation Works




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If the organization ever needs to review a contract, it can run a quick searchin the ECM repository and locate it in seconds. When it’s time to purgearchived contracts, a records manager or other designated employee runsa report to find the ones that are ready for disposition. The ECM system can

also run pre-scheduled searches to locate records and send the report tothe appropriate employee.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

How Contract

Automation Works

DOWNLOAD THE FREE GUIDE

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5 Steps to ContractManagementAutomating contract management requires a solid plan of execution,stakeholder support and willingness from end users to adapt tochange. These five steps will help you build and maintain momentumfor contract management.

5 STEPS TO CONTRACT MANAGEMENT

TrainStaff

Map theProcess

GatherRequirements

SecureBuy-in

EstablishOwnership

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



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5 Steps to Contract

Management




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Establish Ownership of the Project

Identifying a project owner and project champion is the first critical steptoward successful contract management. While the project owner handlesdaily operations, the project champion shares the vision of automation withstakeholders and gathers support.

Both project leaders should be able to:

} Effectively communicate with all involved departments,including IT.

} Understand the needs of end users who will be using thenew system daily.

} Express the value of automation to stakeholders acrossthe organization.

} Identify early advocates of automation and enlist theirhelp in gaining support.

1

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

5 Steps to Contract

Management




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Along with these criteria, the project leaders must understand that thebiggest challenge to automating any process is user resistance. JennettMays, Communications Coordinator at the Township of Springwater, Canada,emphasizes the importance of approaching automation as a strategic business

opportunity with clearly expressed benefits.

We can train people, we can give them thesoftware, but they need to be on board with usingit or you’re going to have more problems.

Jennett Mays, Township of Springwater, CA

By addressing user concerns before diving into the technical details of the projeMays has overseen rapid adoption of ECM across the organization.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

5 Steps to Contract

Management


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Secure Buy-In

The project champion should obtain support from all involved departments,not just legal or procurement, to realize the full time- and cost-savings ofautomating the contract management process. For example, an ECM system canautomatically route contracts to the appropriate people for sign-off, making theprocess faster and less laborious for all parties.

Kristin Nace, Director for Fiscal Services at Texas A&M University’s HealthScience Center (TAMHSC), formed an implementation committee to facilitateECM buy-in. The committee decided to start the project in the financedepartment, which included accounts payable, payroll, HR and the contracts andgrants division, because it was the number one paper consumer at TAMHSC.

By selecting a department where the impact of ECM would be immediately clearthe committee generated buzz around the project and demonstrated benefitsinstead of simply talking about them in theory. Potential users approached Nacefrequently to ask when ECM would become available for their departments.

“Adoption was extremely easy,” says Nace. “When it comes to ECM, I don’t have tmake anyone do anything.”

2

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

5 Steps to Contract

Management


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Gather Requirements

Once department leaders are on board, the project owner should obtaininformation about contract-driven processes from end users, stakeholdersand any other involved parties. In particular, identifying pain points helps theproject owner separate the essential steps of the process from thenon-essential ones.

The project owner should identify:

} How employees are trained on contract-driven processes.

} How employees actually perform their contract-related tasks.

} Bottlenecks and redundancies in the contractmanagement process.

3

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



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5 Steps to Contract

Management




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In fact, when the Town of Marana, AZ, begins any new technology project, itdevotes the most time to gathering requirements. It does this by:

} Asking questions. } Gathering sample documents.

} Identifying who does what when, where and why.

} Identifying and analyzing the current business process.

After all, without a comprehensive view of the process, the town’s project ownercould not knowingly improve it. Due to its systematic implementations andwidespread use of ECM technology, the Town of Marana won a Top Digital CityAward in 2012, 2013 and 2014.

Other useful activities during the needs analysis phase include reviewingthe types of contracts that are created, reviewed and approved and taking aninventory of all the software applications involved in the process.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

5 Steps to Contract

Management


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Map the Process

During this phase, the project owner should work with IT to diagram its firstcontract-driven process. The project owner should also collaborate withcontract stakeholders to make sure essential components and departmentalrequirements are not lost.

A 2012 Aberdeen Group survey on contract management automation offersthe following questions to consider when reviewing and reengineeringcontract collaboration:

Using these questions to guide decision-making, the project owner and ITdepartment can map out existing contract-driven processes, highlight manual oinefficient steps, and then automate necessary steps and remove unnecessary o

} When and how is a new contract initiated?

} How do you systematically identify anddistinguish new, renewed and legacycontracts?

} Who is involved in the review and approvalprocess for each type of contract?

4

} Who is in charge of tracking an

monitoring contract deadlinesobligations and compliance?

} How do contracts move througthe entire life cycle, from initiato finalization to archiving?

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



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5 Steps to Contract

Management




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The Importance of Integration

As an organization maps out its newprocess, it must take the integration ofnew software with the organization’s

previous software investments intoaccount. The project leaders should selectan ECM system with the ability to integratewith as many pre-existing applications aspossible, or face greater pushback whenemployees have difficulty learning anentirely new system.

A key benefit of using ECM as theintegrative “heart” of an automatedcontract process is that it enablesorganizations to standardize the centralsystem while customizing the deliveryof information based on departmentalneeds, providing consistency, security and

transparency to users through familiarapplications they use every day.

Integration saves

time and money byautomating manualtasks. It also reducesthe need for end-usertraining by deliveringadditional functionalitythrough line-of-

business applications.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



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5 Steps to Contract

Management




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How does this work? Data captured in a common intranet portal like MicrosoftSharePoint can be automatically archived in the ECM system, expanding storagecapacity and eliminating the need for staff to duplicate work from one systemto another. Employees can later view files stored in the ECM system from the

interface with which they’re comfortable.

Oftentimes, employees are unaware they’re even using an ECM solution. Forthem, ECM is an invisible extension of the primary system. They don’t needtraining on how to use a new software system, nor do they have to waste timeretrieving paper copies of important records.

Train Staff

Switching from a manual to an automated contract management processrequires a significant change in employee behavior, but thorough and engagingtraining can help facilitate the transition. Community Action Partnership, a statagency in Minnesota, successfully automated its application approval process inseveral departments with the help of an engaging training program.

5

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

5 Steps to Contract

Management


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Catherine Fair, Director of Energy Assistance Programs, managed change byhosting a kickoff party and making an educational “before and after” film. “Wecreated and screened a home movie illustrating the way things were donebefore ECM, with endless searches for files, frustrated staff and clients. Then w

showed how easy paperless application processing would be.”

The entertaining quality of the agency’s training helped increase ECM adoptionand awareness. Fair says, “We have staff with varied computer competency, soa positive attitude to the new system was critical to the success of the project.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

5 Steps to Contract

Management

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Contract Automationin Action

The Contracts Administration Office at Texas A&M University isresponsible for processing, reviewing and approving contracts fromvarious departments within the Health Science Center (HSC). Here ishow ECM has decreased processing time from six to eight weeks toone to two weeks per contract.

Why Automate



Contract Management


Automation

How Contract

Automation Works

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Management

Contract Automation

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Contract Automation

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Store Initial Contracts

Contracts originate in different HSCdepartments, including the Collegeof Medicine, the College of Nursing,

the College of Pharmacy, the Collegeof Dentistry and the School of RuralPublic Health. Staff members fromthose departments scan the collecteddocuments directly into the For HSCReview folder.

During the scanning process, the contract

is assigned a unique ID number. Thisnumber appears in a contract templatethat contains additional metadata likethird party name, contact information andthe start and end dates of the contract.

Why Automate



Contract Management


Automation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



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Contract Automation

in Action




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Review and Edit Contracts

Once a document has been stored in the ECM system, the review process beginsBusiness process automation facilitates the review process.

Different people in the ContractsAdministration Office areresponsible for managing differetypes of contracts. For example,contracts from the College ofMedicine and College of Nursingare assigned to one staff membe

called the HSC component contawhile contracts from the School oRural Public Health are assignedanother HSC component contactTo begin, each contract from theFor HSC Review folder routes tothe folder of the appropriate HSCcomponent contact.

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Contract Management


Automation

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Automation Works

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Management

Contract Automation

in Action



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Both the HSC component contact and the person submitting the contract receivean email stating that the contract has been received. This email also contains thcontract number in order to simplify tracking.

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Contract Management


Automation

How Contract

Automation Works

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Management

Contract Automation

in Action



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Once the HSC component contactreceives the contract, he populatesthe template with the names ofthe people who will need to review

the contract. The ECM systemcan then email a shortcut of thecontract to each reviewer. Thismethod allows the reviewers to seeeach other’s notes and make theirown comments within the same,original document.

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Contract Management


Automation

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Automation Works

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Management

Contract Automation

in Action



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After review is complete, the HSC component contact who initially submitted thecontract receives an email saying the contract has been reviewed and requireschanges. From the email, he opens the contract in the ECM system and createsa new contract with all the necessary changes. The pages of the revised contrac

are appended to the old contract so staff can easily track changes.

The review process is repeated until everyone agrees on the finalized versionof the contract.

Sign Finalized Contracts

After the contract has been finalized, it must obtain approval signatures. TheHSC component contact sends an email to each person who needs to sign thecontract. Again, the email contains a shortcut to the final contract, allowing forapprovers to sign the same document simultaneously. In this example, approversign the contract by appending a personal stamp to the document and thenupdating a particular field in the template.

Contracts that have been signed and finalized move into a record series whereauthorized staff can access and review them as needed.

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Contract Management


Automation

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Automation Works

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Management

Contract Automation

in Action



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Benefits

} Contracts are processed up to six times faster.

} Contracts can be simultaneously reviewed by multiple parties.

} Finalized contracts are accessible by all involved HSC personnel,making the auditors happy.

Why Automate



Contract Management

Benefits of ContractAutomation

How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion

Contract Automation

in Action

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Get the full story on Texas A&M in the

free white paper, Delivering AutomatedCampus-Wide Processes.

Delivering automated

campus-wide processes

Summary ofWebinar hostedby the ChronicleofHigher Education featuring:

Judith Lewis, Senior ITManager ofIT SolutionsandSupport, TexasA&M University

Robert Hensz, Risk andComplianceOfficeProgram Manager, TexasA&M AgriLIFE

KristinNace,AssistantVicePresidentfor FiscalServices&Budgets,TexasA&M HealthScienceCenter

Don Barwick, HUB& Procurement Manager, Texas A&M University System

Pushback hasalwaysbeen the

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Contract Automation:A Before & After Story

From its Onamia, MN, headquarters, the Corporate Commissionof the Mille Lacs Band of Ojibwe Indians operates 12 separate

businesses spread out over 55 miles. More than 500 contracts keepthese businesses serviced, supplied and staffed.

Why Automate



Contract Management


How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion




Wh A t t

Introduction



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Before

Missing deadlines frequently resulted in 10-15% fee increases due to penaltiesor because a discounted quote had expired. In addition, service contractssometimes lapsed. “We could have a major piece of equipment go down and

find out we had no contract,” says Lance Dutcher, Systems Engineer for theCorporate Commission.

To address these problems, the Corporate Commission identified a need foran automated contract management system with the ability to:

} Route documents from outlying properties to the Corporate

Commission’s office in a time sensitive manner.

} Track documents to enforce deadlines and address bottlenecks.

} Generate a monthly report summarizing the activity/expirationof contract-related documents.

Why Automate



Contract Management


How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



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After

Dutcher worked with a five-member project team drawn from Management,Legal, Training, Purchasing and IT to develop and refine contract workflows overa two-month period. The team worked out routing processes, deadline times an

designated approvers.

Following a month of designing and programming workflows, Dutcher led threemonths of trial testing using the IT department’s own contracts. After trainingusers in-house, the system went live with all 39 departments in 12 businesses.

As a result of using ECM for contract management, the Mille Lacs Band has

been able to:

} Standardize the management and storage of contracts.

} Share documents more efficiently between businessesand departments.

} Eliminate printing and storage costs of paper contracts.

} Automatically generate reports of expiring contracts.

Why Automate



Contract Management


How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



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According to Dutcher, the greatest benefit is time. “Most of our documents arenow routed within three days or less, instead of weeks or months. We used tohave an administrator at each location distribute paper copies for signatures thawere faxed—and sometimes re-faxed if they weren’t legible. Now the documents

are emailed to a single contract administrator, uploaded into the ECM system anautomatically routed for approval,” Dutcher says.

“We’ve been able to have 12 people at different properties sign a document in lesthan 90 minutes.”

Why Automate



Contract Management


How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



Conclusion



Contracts aren’t the only documents that need signatures.

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Conclusion

Contracts are whereyou record yourpromises. By managingtheir formation andexecution, you avoidcrises—and ensure

you deliver on thosepromises.

PricewaterhouseCoopers study:

Contract Management: Control

Value and Minimize Risks

Contracts play an important role in

any organization, but for those withoutcontract automation, contracts are asmuch a source of frustration as revenue.Rather than hire more staff or increaseadministrative tasks to regain control overcontracts, organizations can automate andstandardize the contract process.

ECM streamlines the entire lifecycle ofcontracts, from internal contract requeststo final signatures to archiving. Throughelectronic document storage, processautomation and records management,organizations can transform contractmanagement from a source of inefficiency

to a profit powerhouse.

Why Automate



Contract Management


How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



ConclusionConclusion


Why Automate

Introduction



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Contract Management


How Contract

Automation Works

5 Steps to Contract

Management

Contract Automation

in Action



ConclusionConclusion
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